Question

If $535 is invested at an interest rate of 6% per year and is compounded continuously, how much will the investment be worth in 10 years?

Answer 1

the investment after 10 years would be 856

Answer 2

$ 958.10

Explanation:

Given that

Initial investment P=$ 535

Need to find future worth A=?

Interest rate= 6%

time n= 10 yr

We know that formula for compound interest

`A=P\left ( 1+(r)/(100) \right )^n`

Now by putting the values

`A= 535\left ( 1+(6)/(100) \right )^(10)`

A=$ 958.10

So the investor will get $ 958.10 in 10 years.